i. ii. Given an interest of 12% "payable" semi-annually, find a) an effective half-yearly interest and b) a yearly, quarterly, monthly, and biennial interest, equivalent to a). Given an effective interest of 12 %, find a half-yearly interest equivalent to 12% per annum, and b) a nominal interest related to this semiannually interest found.

i. ii. Given an interest of 12% "payable" semi-annually, find a) an effective half-yearly interest and b) a yearly, quarterly, monthly, and biennial interest, equivalent to a). Given an effective interest of 12 %, find a half-yearly interest equivalent to 12% per annum, and b) a nominal interest related to this semiannually interest found.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Find the nominal rate compounded annually equivalent to the rate of interest of 8 % compounded quarterly.
If $1125.00 accumulates to $1248.19 in two years, six months compounded semi-annually, what is the effective annual rate of interest? The effective annual rate of interest is %.
11. For each annuity, calculate the future value and the interest earned. Rate of Compound Regular Interest Compounding Payment per Year Period Time a) $2500 per year 7.6% annually 12 years b) $500 every 6 months 7.2% semi-annually 9.5 years c) $2500 per quarter 4.3% quarterly 3 years
Assuming a 360-day year, when a $11,200, 90-day, 5% interest-bearing note payable matures, the total payment will be Oa. $560 Ob. $140 Oc. $11,760 Od. $11,340 0 0 0 0
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A loan of $ 10,000 is amortized by equal annual payments for 30 years at an effective annual interest rate of 10 % Determine the year in which the interest portion of the payment is most nearly equal to one-half of the payment. The year that the interest portion of payment is most nearly equal to one-half of the payment= ?
What is the future value on December 31, Year 5, of a deposit of $25,000 made on January 1, Year 2, assuming interest of 12% compounded semiannually?
Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future compounding time periodic interest in Value frequency deposit (m) earned years $ $200,000 5% annually 10 12.5779 15905.29 $ $250,000 7.8% semiannually 11 34.6003 7225.43 $ $125,000 3.7% quarterly 15 120.3921 1038.46 $ $ $225,000 3% monthly 15 $ $175,000 7.5% weekly 12 A
H3. Show proper step by step calculation
From the interest statement of 18% per year, compounded monthly, determine the value for compounding period.
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $6,500 under each of the following situations: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. The payments are received at the end of each of the five years and interest is compounded annually. 2. The payments are received at the beginning of each of the five years and interest is compounded annually. 3. The payments are received at the end of each of the five years and interest is compounded quarterly. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Deposit Date The payments are received at the end of each of the five years and interest is compour Note: Round your final answers to nearest whole dollar amount. First payment Second payment Third payment Fourth payment Fifth payment j= 3% 3% 3% 3% 3% Required 3 X Answer is complete but not entirely corre n= 4 ✓ $ 8 12 16 ✓…

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